The proposed bill, HB2318, amends the existing regulations governing the State Match Advantage for Rural Transportation (SMART) Fund. Key changes include the authorization for the Arizona Department of Transportation (ADOT) to redistribute unawarded SMART Fund monies biannually, ensuring that each category of funding receives its designated share. The bill also expands the allowable uses of SMART Fund monies to include reimbursements for federal grant matches and funding for design and engineering services that meet federal standards. Additionally, it modifies the eligibility criteria for applicants, allowing entities eligible for federal grants to apply, and establishes new repayment procedures for awarded funds that are not utilized as intended.

Furthermore, the bill shifts the responsibility for approving expenditures from the Board to ADOT, while also increasing the percentage of SMART Fund monies that can be used for administrative purposes from 1% to 5%. It introduces stricter requirements for applicants, including the need to apply for federal grants within two years of receiving funding for design services, and mandates repayment of any funds if the applicant fails to secure the federal grant. The bill also eliminates the previous 15-day notification requirement for applicants who do not secure federal grants, streamlining the process for reallocating unawarded funds. Overall, these changes aim to enhance the efficiency and effectiveness of the SMART Fund in supporting rural transportation projects.

Statutes affected:
Introduced Version: 28-339
House Engrossed Version: 28-339
Chaptered Version: 28-339